Capital Group’s Atluri Sees 5% Yields If Fed-Cut Bets Scrapped
- Manager of $82 billion fund is watching US data for hot prints
- Atluri joins growing chorus doubting scope of Fed cuts in 2024
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Treasury yields could soon be heading back toward 5% if strong economic performance delays the Federal Reserve’s rate-cut plans, according to Capital Group Inc.’s Pramod Atluri.
Atluri, who runs the $81.8 billion Bond Fund of America — the US’s second-largest active bond fund — expects yields to fluctuate between 4% and 5% in 2024 as the market rapidly recalibrates expectations for the scope of any Fed hikes. A 5% rate on the 10-year Treasury would see the benchmark yield back near the 16-year high reached in October; the security traded at 4.20% as of 10:50 a.m. in New York.